Best Global Brands by Value – 2006

The previously announced Interbrand & BusinessWeek 2006 Best Global Brands by brand value is finally out with no major movements in the top 10.

Brand value is calculated as the net present value of the earnings the brand is expected to generate and secure in the future for the time frame from July 1, 2005 to June 30, 2006. To be considered the brands must have a minimum brand value of US$2.7 billion, achieve about one third of their earnings outside of their home country, have publicly available marketing and financial data, and have a wider public profile beyond their direct customer base.

Here is the list with 2006 top 10 standings:
Rank Brand Brand Value ($m)
1(1) Coca-Cola 67,000
2(2) Microsoft 56,927
3(3) IBM 56,201
4(4) GE 48,907
5(5) Intel 32,319
6(6) Nokia 30,131
7(9) Toyota 27,941
8(7) Disney 27,848
9(8) McDonald’s 27,501
10(11)Mercedes 21,795

Top Gainers
The top gainer with a brand value increase of 46%, Google (#24) creates growth under with the strategy of “do no evil” positioning itself at the opposite end of the spectrum from the more corporate Microsoft. Overall growth of Internet commerce has perpetuated consumers’ acceptance of purchasing goods and services online enabling eBay (#47) to skyrocket in value up 18% and the third highest gainer this year.

In the second spot with a value increase of 20%, Starbucks (#91) has found financial success by leveraging the brand with a premium fast food and extending its product offering into music and publishing.

Top Decliners
The growth of mass retailers has taken market share from traditional apparel brands such as Gap (#52). Losing the most brand value with a decline of -22%, Gap has been unable to clarify its brand image and with a less distinct positioning the brand has been less effective at selling clothing causing reduced long-term stability.

Ford (#30) continues to lose money on every car sold – and brand value year after year. Down -16% this year, Ford’s American heritage is an insufficient brand attribute to hold off growing competition from Japanese and German automakers.

Down -12% this year, Kodak (#70) has made valiant strides to catch up with the digital world, however the reality is that competition is fierce and profitability is thin compared to Kodak’s film business and thus the brand’s value continues to decline.

Last year Best Global Brands by Value for 2005

Further readings on this:
Interbrand’s press release

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